Performance and Portfolio Update

  • In the first quarter, the Institutional share class of the Fund outperformed the MSCI EAFE Index by 55bps.Δ
  • During the quarter, market volatility rapidly increased and international developed markets, as represented by the MSCI EAFE Index, posted a -1.53% return, its worst quarterly result since the first quarter of 2016.
  • The Fund’s ESG profile added to relative performance versus the MSCI EAFE Index during the quarter. The Fund’s large overweight to the highest-rated ESG companies contributed to relative performance while the lowest-rated group detracted from relative results. Longer term since the Fund’s inception, an overweight to the highest-rated ESG companies has contributed to relative performance.△△
  • From a sector perspective, eight out of 11 sectors produced positive relative results for the Fund. Stock selection in Consumer Staples, led by Personal Products companies, added the most to relative performance. Stock selection in Financials, driven by Capital Markets and Insurance companies, was another strong contributor to performance.
  • Stock selection in the Industrials sector, driven by companies in the Professional Services and Electrical Equipment industries, detracted from relative performance. In addition, relative performance was hurt by no exposure to a top performing industry, Aerospace & Defense. The Fund avoids investing in companies that manufacture or sell weapons.
  • On a regional basis, the European and Pacific regions added to relative performance in the first quarter versus the MSCI EAFE Index. Within Europe, companies with leading ESG profiles in the UK, Switzerland and Germany were additive to performance, and within the Pacific region, Japan and Hong Kong holdings produced positive relative results.


(as of 6/30/18)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax MSCI EAFE ESG Leaders Index Fund - Individual Investor Class-0.95-1.91-2.964.773.465.35-4.53
Pax MSCI EAFE ESG Leaders Index Fund - Institutional Class-0.93-1.91-2.875.043.725.64-4.80
MSCI EAFE ESG Leaders (Net) Index-0.94-1.37-3.085.484.456.46-5.31
MSCI EAFE (Net) Index-1.22-1.24-2.756.844.906.442.844.80
Lipper International Large-Cap Core Funds Index-1.50-2.52-3.335.844.416.112.354.42

Performance data quoted represent past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For most recent month-end performance information call 800.767.1729 or visit

Figures include reinvested dividends, capital gains distributions, and changes in principal value.

1The inception date for the Pax MSCI EAFE ESG Leaders Index Fund Institutional Class is January 27, 2011 and the Individual Investor Class inception date is March 31, 2014.

As of 5/1/17 prospectus, total annual Pax MSCI EAFE ESG Leaders Index Fund operating expenses, gross of any fee waivers or reimbursements, for Individual Investor Class and Institutional Class shares are 0.80% and 0.55%, respectively.

Performance Attribution

ESG Ratings

(as of 3/31/18)
Average Active Weights (%)
3-month Relative Contribution (%)Since Inception 1/27/11
Relative Contribution (%)

XOther: ETFs (for short-term cash mgmt. purposes) and Cash & Equivalents.
Past performance is no guarantee of future results.

Portfolio Characteristics

(as of 3/31/18)
Market Cap (weighted avg.)$53,810M$60,581M
Forward Price/Earnings14.4114.04
Number of Securities335927


Top Ten Holdings

(as of 6/30/18)
Total SA 2.2%, Roche Holding AG 2.0%, GlaxoSmithKline PLC 1.9%, SAP SE 1.8%, Commonwealth Bank of Australia 1.5%, BASF SE 1.4%, Novo Nordisk A/S, Class B 1.4%, Unilever PLC 1.3%, Siemens AG 1.3% and Allianz SE 1.3%, Holdings are subject to change.


ΔA basis point (bps) is a unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security.
MSCI EAFE Index quarterly returns: Q1-18:-1.53%, Q4-17: 4.23%, Q3-17: 5.40%, Q2-17: 6.12%, Q1:17: 7.25%, Q4-16: -0.71%, Q3-16: 6.43%, Q2-16: -1.46% and Q1-16:-3.01%
△△MSCI ESG Research evaluates companies’ ESG characteristics and derives corresponding ESG scores and ratings. Companies are ranked by ESG score against their sector peers to determine their eligibility for the MSCI ESG indices. MSCI ESG Research identify es the highest-rated companies in each peer group to meet the float-adjusted market capitalization sector targets. The rating system is based on general and industry-specific ESG criteria, assigning ratings on a 7-point scale from AAA (highest) to CCC (lowest).
ƒWeighted Average is an average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average.
~Forward Price-Earnings Ratio or P/E FY1 ratio is a ratio for valuing a company that measures its current share price relative to its per-share earnings over the next 12 months.
°Return on Equity: The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.
A historical Beta is used for Funds with greater than 2 years of performance history under the same mandate. Three year Beta is used. Beta reflects the sensitivity of a Fund’s return to fluctuations in its benchmark; a beta for a benchmark is 1.00: a beta greater than 1.00 indicates above average volatility and risk.

On 3/31/2014 Pax International Fund and Pax MSCI EAFE ESG Index ETF merged into the Pax MSCI International ESG Index Fund (the Fund), a passively managed index fund which seeks investment returns that closely correspond to the price and yield performance, before fees and expenses, of the MSCI EAFE ESG Index. Based on the similarity of the Fund to Pax MSCI EAFE ESG Index ETF, Pax MSCI EAFE ESG Index ETF (the Predecessor Fund) is treated as the survivor of the mergers for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to 3/31/2014 is that of the Predecessor Fund.

The statements and opinions expressed are those of the author as of the date of this report. All information is historical and not indicative of future results and subject to change. This information is not a recommendation to buy or sell any security. Past performance does not guarantee future results.

PAX008020 (10/18)

Scott LaBreche

Portfolio Manager

Scott LaBreche is Portfolio Manager & VP, Portfolio Analytics, at Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds.

Scott is a Portfolio Manager of the Global Women’s Leadership Strategy, which includes the Pax Ellevate Global Women’s Leadership Fund. He is also a Portfolio Manager of the Pax International Sustainable Economy Fund, the Pax Global Sustainable Infrastructure Fund and the Pax U.S. Sustainable Economy Fund.

He is responsible for portfolio management of systematic strategies, portfolio analytics and risk oversight, and quantitative ESG research.

Before joining Impax in 2007, Scott was a Securities Fund Analyst at Lincoln Financial Group. He has been in the investment management industry since 1999.

Scott holds a Bachelor of Science in business administration and a Master of Business Administration with advanced certificate in finance from Southern New Hampshire University.

Recent Insights

Greg Hasevlat

Senior Sustainability and ESG Analyst

Greg Hasevlat is a Senior Sustainability and ESG Analyst at Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds. He evaluates the environmental, social and governance performance of companies for potential inclusion in the firm’s portfolios.

He is also involved in shareholder and public policy engagement and coordinating the firm’s sustainability reporting. Greg is a member of the Impax Gender Analytics Team.

Prior to joining the firm in 2009, Greg was Government Affairs Representative at a New Hampshire‑based consulting firm, where he represented clients from various industries before the New Hampshire legislature.

Greg received a bachelor’s degree in English from the University of New Hampshire and an MBA from Southern New Hampshire University.

Authored Insights

Steve Falci, CFA®

Head of Systematic & Multi-Asset Strategies

Steve Falci is Executive Vice President and Head of Systematic & Multi-Asset Strategies at Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds.

Steve oversees the firm’s systematic equity, multi-asset and fixed income strategies, as well as the integration of Environmental, Social and Governance (ESG) research into these strategies.

Steve has more than 30 years of experience in investment management. Prior to joining the firm in 2014, he served as Head of Strategy Development, Sustainable Investments, at Kleinwort Benson Investors, where he provided strategic direction, product development and identification of new market opportunities in the sustainable investment business. Before that, Steve served as Chief Investment Officer of Equities at Calvert Group and was a Principal and Senior Portfolio Manager at Mellon Equity Associates.

Steve serves on the board of directors for the US Forum for Sustainable and Responsible Investment (US SIF). He also serves on the board of directors for Mercy Investment Services and is the chairperson of their Investment Committee. Steve has a Master of Business Administration from the Stern School of Business at New York University, a Master of Arts from Pittsburgh Theological Seminary and a Bachelor of Science in economics from New York University. He is a CFA® charterholder.

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